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Provided the following balance sheet, answer the questions below: Assets Liabilities Required Reserves $8 M Excess Reserves $3 M T-Bills $45 M Commercial Loans $50
Provided the following balance sheet, answer the questions below:
Assets Liabilities
Required Reserves $8 M Excess Reserves $3 M T-Bills $45 M Commercial Loans $50 M | Checkable Deposits $100 M Banks Capital $6 M |
a. What is the required reserve ratio?
b. What are the total reserves this bank holds?
c. What are the banks risk weighted assets?
d. If the bank commits to another $15 Million in its commercial loans, how has the capital ratio changed?
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